[ikarcuaso]

My wife and I are thinking about buying a small, condo unit in a new, 7-story downtown San Francisco bldg. (South of Market). Some units have already sold. The units are very tiny (<400 sq ft) and go for less than $350K. "Regular" size condos in the area (~1000+ sq ft, etc) go for $500K up to over $2 million. It looks like nearby studios rent in the low $2000s per month, give or take.

We consider this a long-term investment. We plan to rent out the unit. FWIW, we rented our prior single-family home for a couple years before selling it in 2005. We've never bought real estate as strictly an investment before. We're considering a condo because it's less expensive, and I currently don't have much interest in the greater maintenance requirements (either DIY or paying someone else) that come with renting a single-family home. Any thoughts? Go for it, or am I stupid for considering this?